This report summarizes initial work completed to date on analyzing the interdependent nature of demand among several agricultural products in Thailand. Previous demand studies have focused primarily on a single commodity with little attempt to measure the overall relationships among demand quantities for all commodities. Interdependent demand relationships among 18 agricultural products are analyzed in this study. Direct cross-price and income elasticities are estimated for the individual commodities. An analysis of the farm retail price spread also is analyzed.

Consistent and comprehensive data series are a desirable requisite for implementation of interdependent demand analysis. Although the data available for this study were not as consistent nor as comprehensive as desired it was felt that sufficient data were available to support the empirical analysis of this initial study. As improved data series become available future studies of interdependent demand relationships among agricultural products in Thailand may benefit from the empirical methodologies and statistical procedures developed for this study. Summary discussions of empirical models of consumer demand and consumer behavior theory are presented in appendices of the report to assist researchers in carrying out further interdependent demand studies for agricultural products in Thailand.

The empirical analysis summarized in this report is part of a cooperative research effort being carried out by the Division of Agricultural Economics (DAE) of the Ministry of Agriculture and Cooperatives, Royal Thai Government, and the Center for Agricultural and Rural Development of Iowa State University. The cooperative research effort is funded by the Agency for International Development and the Royal Thai Government, and this study represents one phase of a sector analysis project being undertaken to provide models and empirical analysis which can aid development and policies for agriculture in Thailand.

This Fourth Annual Report summarizes accomplishments of the Agricultural Sector Analysis Project in Thailand during fiscal year 1977 and relates these accomplishments to past work progress as well as to projected work for fiscal year 1978. Accomplishments described in this report are a result of the cooperative research effort being carried out by the Division of Agricultural Economics (DAE) of the Ministry of Agriculture and Cooperatives, Royal Thai Government, and the Center for Agricultural and Rural Development of Iowa State University. The cooperative research effort is funded by the United States Agency for International Development and the Royal Thai Government. This summary describes one phase of a sector analysis project being undertaken to provide models and empirical analysis which can aid development and policies for agriculture in Thailand.